BANGKOK — On Monday, President Xi Jinping of China convened a meeting with leaders from the private sector, reassuring them that the government’s approach to private enterprises would remain consistent. This dialogue comes at a critical time as officials strive to rejuvenate an economy affected by the pandemic, a series of regulatory crackdowns, and the ongoing real estate crisis.
Notable attendees included Jack Ma, the founder of Alibaba, who has been significantly impacted by the government’s previous actions targeting the technology sector. Xi indicated that the Communist Party’s strategy regarding private enterprises is now part of “the socialist system with Chinese characteristics,” the official term for the party’s governance style. He emphasized, “They cannot and will not change.”
Xi also expressed the government’s intent to “sincerely protect the legal rights of private businesses and entrepreneurs, according to the law.” However, he stressed the importance of adhering to the country’s socialist laws, asserting that any illegal actions by companies would face scrutiny and consequences.
These statements come in the wake of a comprehensive crackdown on the tech industry that began in 2020 aimed at dismantling monopolistic practices and enforcing stringent data protection regulations. Jack Ma, a prominent figure during this crackdown, has stayed out of the spotlight following his critical remarks about China’s regulatory system and financial practices made in a 2020 address in Shanghai.
The meeting in Beijing also included influential executives such as Zeng Yuqun, chairman of battery maker CATL, Wang Chuanfu, chairman of electric vehicle manufacturer BYD, and Pony Ma, CEO of Tencent, which operates the popular app WeChat, supporting a broader array of media reports regarding the event. Xi expressed his hope that private enterprises would first “get rich” and later assist in promoting common prosperity, which aims to mitigate the wealth gap in the nation. Alibaba has previously committed $15.5 billion to this initiative, while Tencent has pledged $7.7 billion.
Initially, a brief report on the meeting was shared by state media but was later removed. An online search then uncovered a condensed version that omitted the names of the participants. The subsequent summary of the meeting included Xi’s remarks and identified some attendees but did not mention Jack Ma.
Jack Ma, once recognized as China’s richest individual, faced significant consequences after his October 2020 speech criticizing regulatory conservatism, which led to the cancellation of his Ant Group’s stock market launch. The digital payments platform, which emerged from Alibaba’s Alipay service, was mandated to restructure into multiple independent entities. Alibaba has also faced legal challenges, including an investigation and a hefty $2.8 billion fine for violating anti-monopoly laws.
